KEC controls the various tenements in Italy that comprise the Ivrea nickel project.
Once this disposal has been completed, Nyota will be a pure cash shell. In November of last year it announced the potential acquisition of Bigdish Limited, which would count as what is known as a reverse takeover in the UK and a back-door listing in Australia.
The purchaser has agreed that Nyota will be under no obligation to pay for any further work on the tenements, save for potential contributions of €12,500 towards the tenement licence renewal fee and a further contribution of €7,500 towards the Galerno licence renewal fee.
Nyota will retain a 3% net smelter return (NSR) payable on future sales from the Ivrea nickel project. Additionally, the agreement provides for a buy-back of the NSR by the purchaser for A$200,000 in the first two years and A$400,000 in the third and fourth years following execution of the agreement.